KUALA LUMPUR: POLITICAL stability is crucial for the country to attract investments in the midst of the global economic slowdown, Prime Minister Datuk Seri Najib Razak said yesterday.

"The global economic outlook remains gloomy and the financial predicament within the Eurozone is a big cause for concern.

"For us to show resilience and weather this global economic storm, a strong and co-operative government is needed to put the country on the right trajectory."

Najib was speaking after launching the annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

He said businesses would be among the worst hit if a country was politically unstable. "Costs shoot up, investment and share prices plunge, and assets and wealth face decline, even evaporation.

"The government is committed to doing everything we can to address problems faced by businesses. Let us together embark on transforming the country's socio-economic landscape."

Earlier, ACCCIM's outgoing president Tan Sri William Cheng voiced his concern over several issues, including energy costs, labour and land shortages, transport and logistics, the education policy and crime prevention.

Najib said in response that the government was aware of the issues and was willing to "break down barriers wherever they exist" to not only improve the investment climate but the quality of life.

"However, things will not change overnight. Some of these issues are going to take time to overcome."

Najib urged local Chinese entrepreneurs to step up domestic investments and to use their high-level contacts to increase Chinese investment in Malaysia.

"Small businesses can be merged to become a bigger entity in order to strengthen the competitiveness of our products and services, as well as to tap new opportunities in non-traditional markets to maintain the export performance."

He lauded ACCCIM for not only championing business interests but also contributing to the long-term development of the national economy.

"We have always listened to Acccim's positions, perspectives and proposals, not only because you represent a hugely significant part of the Malaysian society but because you are frank and constructive in making your case.

"I hope other non-governmental organisations will emulate both your attitude and strategy."